LGU shares from SBMA increase to P115 millionFeb 15, 2016

SUBIC BAY FREEPORT - The Subic Bay Metropolitan Authority (SBMA) announced on Monday the release of P115.23 million in revenue shares to adjacent local government units (LGUs) that are affected by operations of the Subic Bay Freeport.

SBMA Chairman Roberto Garcia said that the releases represented LGU shares for the second half of 2015.

“The current shares totalling P115 million exceeded by 9.44 per cent the P105-million shares released in the same period last year. This only goes to show that our business locators, whose taxes pay for these shares, are making good,” Garcia added.

Garcia said the total share for the said period was P107.03 million after deducting the mandatory 10 per cent retention amount of P11.89 million, which would be refunded after two years.

Added to the total amount for the second half of 2015, were the retained shares of P8.2 million that were withheld in the second semester of 2013.

Garcia said that revenue shares for the LGUs are derived from the corporate taxes paid bay Subic Bay Freeport-registered enterprises, which is five per cent of their gross revenue.

Of these, three per cent goes to the national government through the Bureau of Internal Revenue (BIR), while two per cent goes to the SBMA for distribution to LGUs.

The LGU shares are determined according to population (50 per cent), land area (25 per cent), and equal sharing (25 per cent).

In August 2010, the SBMA implemented the direct payment scheme to ensure prompt release of the LGU shares.

The LGU funds are intended to support community development projects, particularly on health, education, peace and order, and livelihood generation to enable communities near the Subic Bay Freeport to keep pace with developments in the special economic zone. (30)